In this lesson you will learn how to take it one step further by
identifying the critical factors to success and limiting factors
that hold you back. It is the “strategic path”.
The best way to explain this is by example…
Let’s assume you love your high-paying career, you’re under 30, and
you lead a simple life. There is no need to get fancy with your
wealth plan. Your primary asset is your earning capacity so your
strategic factors are to control lifestyle costs, maximize
savings, and keep the process simple with a traditional
paper asset investment plan. This plan will do the job with minimal
risk and hassle.
However, if you are a 50 year old, high school shop teacher with
modest savings then the previous plan won’t be enough. You will
need to exploit your other advantages: you have summers available
and excellent handyman skills. Your best chance to make up for lost
time and insufficient savings is to buy fixer-upper properties for
long-term rental. Set a goal of one per year and spend the summer
getting each unit fixed-up and rented.
Each person’s life implies certain wealth building characteristics
– no two are identical. There is no perfect solution; however, some
work well in certain situations and others work better in
alternative situations. One size does not fit all. Your task is to
match your strategy to the inherent characteristics of your life.
Stated another way, there are an unlimited number of ways to build
wealth, but there is only one best way for you.
Your job is to find that best strategy so you have the highest odds
of reaching the goal. The way you do that is by thinking
strategically about the inherent characteristics of the strategy
and matching those characteristics to your personal resources,
skills, interests, and abilities.
It is the fastest, surest, most enjoyable way to achieving the
goal. It is the strategic path to wealth.